On 13 December 2024, the Payment Systems Regulator (PSR) published a consultation paper, CP24/14, setting out potential remedies to the issues identified in the Final Report of its Market Review into Cross Border Interchange Fees.  

The proposals

The PSR’s Final Report on its Market Review found several harms associated with the lack of competition in the cross border interchange fee market.

To address these issues, CP24/14 sets out a potential price cap remedy which would see an initial cap put in place for a limited time while further analysis is carried out to establish an appropriate methodology and level for a longer lasting cap. 

Next steps

The deadline for responses to CP24/14 is 7 February 2025.

If it decides a phased approach to a cap is appropriate, the PSR plans to publish a final remedies notice on the proposed initial price cap. It also notes that it will consult on a proposed methodology for developing a lasting cap at a later date.